Energy services.pdf (37.7 KB)
I would like to know whether it is feasible to incorporate life cycle cost analysis in Dynare. I am writing down a model that includes home production. Home production consists of energy services, which combine durables and energy inputs. In order to determine the price of that energy service, I minimise the production costs during the lifetime of the durable. My only issue here is not the acquisition cost of the durable (which is payed on a one shot basis) but the operation cost of that durable during the lifetime of the energy service (meaning the price of energy times energy consumption during the lifetime of the durable).
I am not aware of such a feature on Dynare (incorporating different lifetimes for different durables). If it is not possible to do so, I will simplify the computation by incorporating a depreciation rate in order to reflect the lifetime of the durable and not integrate a life-cycle-cost analysis.
Thank you in advance.